Collaborate : 22/09/20 Despatch of Entitlement Issue Offer Documents

ASX ANNOUNCEMENT

22 SEPTEMBER 2020

DESPATCH OF ENTITLEMENT ISSUE OFFER DOCUMENTS

Collaborate Corporation Limited (ASX:CL8) (Collaborate or the Company) is pleased to confirm the despatch today of letters to Eligible Shareholders providing details of how to access the prospectus as lodged with ASIC and ASX on 14 September 2020, including the entitlement and acceptance form online, for the partially underwritten non-renounceable entitlement issue of shares and options to raise approximately $3.455 million before costs (Entitlement Issue).

The Entitlement Issue will be offered to shareholders registered at the Record Date (as defined below) with a registered address in Australia and New Zealand (Eligible Shareholders) on the basis of one (1) New Share for every three (3) Shares held, together with one (1) free attaching options for every five (5) New Shares subscribed for and issued. The free attaching options will be unquoted, exercisable at $0.015 each and expire on 31 October 2022.

As previously announced, the Entitlement Issue is partially underwritten up to $2.080 million by existing shareholders of the Company namely SG Fleet Management Pty Limited and Willoughby Capital Pty Ltd as trustee for the Willoughby Capital Trust, alongside directors of the Company namely Adrian Bunter and Chris Noone and Chief Operating Officer, Ben Hershman.

The funds raised under the Entitlement Issue will be used to fund continued growth of the Carly car subscription business and the DriveMyCar car rental business through continued marketing initiatives and pursuit of business development opportunities to grow the available fleet size to meet the demand for vehicles. Additionally, the proceeds will be used for general working capital and to cover costs associated with the Entitlement Issue.

Eligible Shareholders may take up shortfall under the Entitlement Issue in addition to their entitlements under the offer. Applications for securities under the Entitlement Issue can be made by electronic funds transfer or BPAY®. In light of delays in postage delivery times due to the COVID-19 pandemic, the Company will not be accepting payment by cheque or bank draft.

The Closing Date for the Entitlement Issue is 5:00 pm (AWST) on Friday, 23 October 2020.

Following this announcement is a copy of the letter sent to Eligible Shareholders today. Eligible Shareholders are encouraged to participate in the Entitlement Issue. Any questions concerning the Entitlement Issue should be directed to Karen Logan, Company Secretary by email at [e-mail].

Authorised by:

Chris Noone

CEO and Director

Collaborate Corporation Limited

Suite 3, Level 7, 189 Kent Street, Sydney NSW 2000 Tel: [phone]

E: [e-mail] W: www.collaboratecorp.com

ACN 066 153 982

For more information please contact:

Chris Noone

CEO and Director

Collaborate Corporation Limited

1. [e-mail]

Jane Morey

Morey Media

1. [e-mail]

1. 0416 097 678

About Collaborate Corporation Limited

Collaborate Corporation Limited is listed on the Australian Securities Exchange (ASX:CL8). It is Australia's leading listed company focused on providing innovative mobility solutions for consumers and the automotive industry. Collaborate operates www.DriveMyCar.com.auAustralia's leading peer-to-peer car rental business, and www.Carly.co, Australia's first flexible car subscription service, supported by our proprietary PeerPass trust and reputation platform.

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22 September 2020

Dear Shareholder

COLLABORATE CORPORATION LIMITED - PRO-RATANON-RENOUNCEABLE ENTITLEMENT ISSUE

As announced on 31 August 2020, Collaborate Corporation Limited (ACN 066 153 982) (Company) is undertaking a pro rata non-renounceable entitlement issue at a ratio of one (1) Share for every three

1. Shares held (together with one (1) free attaching option for every five (5) Shares subscribed for and issued (New Option)) (Entitlement Issue or Offer) of up to 383,917,498 fully paid ordinary shares (New Shares) and 76,783,500 New Options to raise approximately $3,455,257. The price of New Shares under the Offer is $0.009 each (Issue Price).

The Offer is partially underwritten up to $2,080,000 by existing Shareholders of the Company namely SG Fleet Management Pty Ltd (SG Fleet) and Willoughby Capital Pty Ltd as trustee for the Willoughby Capital Trust (Willoughby Capital), a related party of director Stephen Abolakian, alongside directors of the Company namely Adrian Bunter and Chris Noone and Chief Operating Officer, Ben Hershman (Underwriters). No fees are payable to the major shareholders or officers of the Company for the underwriting commitments. The $850,000 Financing Facility provided by Willoughby Capital to the Company, together with accrued interest of $125,782, to 30 October 2020 will be used to offset its commitments under the Entitlement Issue.

The funds raised from the Offer are currently intended to be used towards funding for customer acquisition, sales and marketing activities and marketplace growth, interest payable on the Financing Facility with Willoughby, working capital and general corporate purposes and expenses of the Offer.

The Company lodged a prospectus for the Offer (Prospectus) with ASIC and ASX on 14 September 2020. The Offer is being made to all shareholders of the Company (Shareholders) named on its register of members at 5:00 pm (AEST) on 18 September 2020, whose registered address is in Australia or New Zealand.

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company (Shares) already on issue. All Shares issued on conversion of the New Options will rank equally with the Shares on issue at the date of the Prospectus. Following completion of the Offer, the Company will have issued approximately 383,917,498 New Shares and 76,783,500 New Options resulting in total Shares on issue of approximately 1,535,669,993 and total options on issue of approximately 285,505,424.

How to Apply for New Shares and New Options under the Offer

An electronic copy of the Prospectus, along with information with respect to applying for your entitlement under the Offer, is accessible at https://investor.automic.com.au/#/home.

If you have already registered, you can log in under "Existing users sign in". If you haven't registered, you can sign in by clicking on "Single Holding Access" or you can click "register" to create a portfolio. Once you have logged in, click on "Documents & Statements" and then click on "download" to the right of the CL8 Prospectus pdf and the CL8 Rights Issue Form pdf to download and view the Prospectus and personalised application form.

You will need to provide your Securityholder Reference Number or Holder Identification Number and postcode to access the online application system and follow the instructions provided including making payment by BPAY®. Your electronic acceptance of the Offer should be made using this electronic service, with payment via BPAY® or EFT. Payment by cheque or cash will not be accepted.

Your acceptance of the Offer must be made on your Entitlement and Acceptance Form which you can access at https://investor.automic.com.au/#/home. The number of Shares to which you are entitled (your Entitlement) is shown on your personalised Entitlement and Acceptance Form which, along with this Prospectus, is accessible at https://investor.automic.com.au/#/home.

Suite 3, Level 7, 189 Kent Street, Sydney NSW 2000 Tel: [phone]

E: [e-mail] W: www.collaboratecorp.com

ACN 066 153 982

If you are unable to access https://investor.automic.com.au/#/homeonline, then you can obtain a copy of the Prospectus and your Entitlement and Acceptance Form by calling Automic on 1300 288 664 (within Australia), [phone] (outside Australia) or at [e-mail] 9:00am and 5:00pm (AEST).

For the purposes of calculating each Eligible Shareholders' entitlement, fractions of entitlements have been rounded down to the nearest whole number of New Shares.

Actions required of Eligible Shareholders

If you wish to take up all or part of your Entitlement, your acceptance of the Offer must be made on the Entitlement and Acceptance Form which can be accessed at https://investor.automic.com.au/#/home.

As an Eligible Shareholder, you may:

• accept your full Entitlement (refer to Section 4.3(a) of the Prospectus); or
• accept your full Entitlement and apply for additional Shortfall Securities (refer to Section 4.3(b) of the Prospectus); or
• accept part of your Entitlement (refer to 4.3(c)) of the Prospectus); or
• if you do not wish to accept all or part of your Entitlement, you are not obliged to do anything.

Key dates for the Offer*

Event	Proposed Date
Lodgement of Prospectus with the ASIC	14 September 2020
Lodgement of Prospectus and Appendix 3B with ASX	14 September 2020
Notice of Entitlement Issue sent to non-Eligible Shareholders	16 September 2020
Existing shares quoted on an 'ex' basis	17 September 2020
Record Date for determining Entitlements	18 September 2020
Letter sent out to Eligible Shareholders with details of how to access	22 September 2020
Entitlement Issue documents online
Closing Date*	23 October 2020
Shares quoted on a deferred settlement basis	26 October 2020
ASX notified of under subscriptions	27 October 2020
Issue date/Securities entered into Shareholders' security holdings	30 October 2020

*All dates, other than the date of lodgement of the Prospectus with ASIC, are indicative only. The Company reserves the right to amend any of the important dates without prior notice but subject to the Corporations Act and the ASX Listing Rules.

If you have any queries concerning the Entitlement Issue, or the action you are required to take to subscribe for New Shares, please contact your financial adviser or Karen Logan, the Company Secretary, via email at [e-mail].

Yours faithfully

COLLABORATE CORPORATION LIMITED

Chris Noone

CEO and Executive Director

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